The Dubai Court of First Instance has ordered a food importing company to pay $390,503.47 (Dh1.43 million) to an overseas supplier after finding that it failed to settle outstanding payments for imported frozen chicken products.
The court also ordered the company to pay legal interest of 5 percent per year beginning February 26, 2026, until the amount is fully settled, in addition to court fees, expenses, and Dh1,000 in legal representation costs.
According to court records, the supplier filed the lawsuit seeking payment for shipments of frozen chicken that had been delivered but remained unpaid despite repeated demands.
The claimant submitted commercial invoices, shipping documents, sales confirmations, account statements, and translated correspondence between the parties as evidence.
Court documents showed that the importing company had acknowledged delays in settling the outstanding obligations.
During the proceedings, the supplier appeared through legal counsel, while the importing company failed to attend hearings or submit a defense.
The court noted that the defendant did not provide evidence that the debt had been paid and did not challenge the authenticity of the documents presented by the supplier.
In its ruling, the court cited provisions of UAE evidence laws, which recognize signed private documents as valid proof unless successfully contested by the signatory.
After reviewing the evidence, the court concluded that the company had imported the frozen chicken products and remained liable for the unpaid balance.
The supplier had sought default interest of 9 percent annually. However, the court applied a lower rate of 5 percent, citing a previous ruling by the Dubai Court of Cassation that found the historically used 9 percent rate no longer reflected prevailing economic and banking conditions.
The court ruled that the debt was due and payable and that the importer had delayed payment without legal justification.
As a result, the company was ordered to pay the full outstanding amount of $390,503.47, or its equivalent in UAE dirhams, together with legal interest and related court costs.
